With India forward towards cashless payments, Samsung has announced that its mobile wallet payment ‘Samsung Pay’ will be launched in India anytime soon. According to reports, Samsung has partnered with American Express to bring Samsung Pay in India. The Korean company is also in talks with Visa and MasterCard as well.
Samsung has begun testing Samsung Pay in India since December 2016. The latest update to Galaxy Note 5 units in India included Samsung Pay, which uses MST (Magnetic Secure Transmission) for cashless payments. Users have to place the phone over the payment terminal’s card reader and the transaction will be complete right away through magnetic signals.
The only setback with Samsung Pay will be that it will work with only premium smartphones. According to marketing research firm Counterpoint, Samsung has over 2.5 million Galaxy S6, Galaxy S6 Edge, Galaxy S6 Edge Plus, Galaxy S7, Galaxy S7 Edge, and Galaxy Note5 (the smartphones that support Pay) customers in India. “This is a pretty good install base and mature users for Samsung Pay to gain initial traction,” Tarun Pathak, senior analyst at Counterpoint was quoted as saying.
The home grown mobile wallet companies such as Paytm and Mobikwik have recorded tremendous growth in customer’s base and transactions post demonetisation. With Samsung Pay entering the Indian market, the domestic mobile wallet companies will take a huge hit and face tough competition. It is also said that Apple also has plans to launch Apple Pay in India.